Facebook video ads will soon bring more revenue for advertisers

Since Facebook is always looking for ways to introduce new features and of course, collect more revenues, their latest announcement comes as a no surprise for tech junkies.

According to Recode, the company is rolling out yet another channel for advertising by testing the new mid-roll video ads. This new format will allow video publishers to insert ads into their clips after people have watched them for 20 seconds or more. Currently, the idea is that Facebook will sell the advertisements and share the generated profit with the publishers, giving them 55% of the sales, which is basically the same ratio that the online video ad business tycoon, YouTube, is offering.

If this idea finally comes through, it will give a chance for many video publishers to make real money from the stuff they have been running on Facebook.

Facebook statistics shows that since the introduction of videos on this social platform a couple of years ago, the video viewing by users has increased up to 100 million hours per day. Taken this into consideration, the decision of Mark Zuckerberg to ban the pre-roll video ads (advertisements that are running before the video starts) comes as a surprise.

The Facebook video ads will get even more effective and bring bigger profits for advertisers. (Source)

So far publishers have not seen much profit from the videos they are showing on Facebook even though they are spending a considerable amount of money to build a significant presence. Because of this obstacle, many publishers have decided to pull out or not place any video advertising content.

It is also worth mentioning that last year Facebook started experimenting by allowing publishers to create videos sponsored by advertisers, which helped generated significant ad dollars.There was also another attempt in 2015 where publishers created a separate video section and were able to share revenue from standalone videos ads that were running there.

This new idea that the company is planning to implement is the most significant one when it comes to direct profit for advertisers, and it is estimated that it will have the biggest impact because it includes all sorts of videos throughout the network.

Another conclusion that we can draw based on this new feature is that Facebook is paying more attention to the time people are spending watching videos rather than the total number of seen videos.

With an international experience in research and analysis, Magdalena joins the team of Born2Invest as the new in-house head of product research and financial analysis as well as a contributor to the website. She obtained her bachelor degree in Business and Economics in her hometown Skopje-Macedonia, and a master degree in Electronic Business Management. As a talented and dedicated student, Magdalena had the opportunity to work abroad in the USA and Mexico complementing her curriculum with valuable skills and know-how, while being part of some prestigious companies in her professional career. With her love for reading and writing, she is one creative individual with a strong opinion on current developments and trending topics from business and financial point of view.